Many of us get into financial trouble that we cannot get out of. That is why bankruptcy exists. It allows you to wipe the slate clean of certain debts such as credit card debt, medical bills, utilities, and more. Yes, you may have to give up some of your possessions and your credit score will go down significantly. However, you are not stuck with a poor credit score. There are ways for you to rebuild your credit score that include:

• Secured Credit Cards: These credit cards are backed by a deposit you make. For example, you give the credit card company a deposit of $1,000 and they give you a card with a line of credit for $1,000. That deposit is used to guarantee that they do not lose their money. If, typically after a year, you continue to make your payments on that card, you get your deposit back and it converts to a normal credit card. All the while, it helps build your credit the entire time.

• Co-Sign a Credit Card or Loan: It will be difficult to impossible to get a loan or credit card by yourself shortly after filing for bankruptcy. However, if you find someone with good credit to co-sign with you, you can build your credit from that loan or credit card. So long as the payments are made on that loan or card.

• Become an Authorized User: An authorized user is someone authorized to use another person’s line of credit. The authorized user typically receives their own card in the mail with their name on it. You can simply shred that card if you so choose. If the account holder actively uses their account and always makes the payments on it, you benefit from their actions without having to do a thing yourself.

• Create a Budget: One of the main reasons people get into debt in the first place is that they do not budget. Create a budget with your monthly income and budget out all your expenses and savings too. If there is money left over after that, you may choose to use that for discretionary purposes. After you create your budget, be sure you stick to it. Your plan is only good if you follow it!